If the Price Elasticity of Demand for a Good Is

question 117

Multiple Choice

If the price elasticity of demand for a good is 1,then a 3 percent decrease in price results in a

• A)0.1 percent increase in the quantity demanded.
• B)1 percent increase in the quantity demanded.
• C)3 percent increase in the quantity demanded.
• D)4 percent increase in the quantity demanded.

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Definitions:

Currency Speculators

Investors who buy and sell foreign exchange with the aim of making a profit from changes in exchange rates, influencing currency values and economic conditions.

Spot Trade

A transaction for the immediate delivery of a currency, financial instrument, or commodity.

Business Days

Days of the week excluding weekends and public holidays when businesses and government offices are typically open.

Forward Trade

Agreement to exchange currency at some time in the future.